Howard Street Jewelry Accounting Case Study on Internal Controls 1. The main internal control concept the Levis ignored was segregation of duties. No one person should be responsible for all transactions from the beginning to the end. Betty had too many responsibilities that were interwoven and should have been performed by more than one person. She handled the cash that came in‚ maintained the cash receipts and the sales records. Another concept that this relates to is that no one
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Howard Street Jewelers‚ Inc. A. Synopsis Howard Street Jewelers Inc. is a small retail business owned by Mr. & Mrs. Julius Levi for more than 40 years. Undoubtedly‚ the company had its ups and downs. It survived its previous sales slack by cutting costs. Currently‚ the business is experiencing a continuous downward spiral of its cash position notwithstanding the safety measures the company had taken. With that‚ Mrs. Lore Levi got alarmed that the jewellery company might close. Mrs. Levi
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1. The Levis overlooked several internal control concepts that could have prevented Betty’s embezzlement from the company. • Segregation of duties: Betty had responsibilities in too many areas. She maintained the cash‚ the cash receipts‚ and the sales records for Howard Street Jewelers. This not only provided Betty with plenty of opportunity‚ but also gave her the means to conceal the theft. • Authorization of transactions: Betty was able to put items on layaway without authorization from management
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LJB Company’s Internal Control Recommendation Report February 2012 Prepared for: LJB Company President Finance Department Prepared by: Cauretta Bell Recommendation Report 2012 It is my immense pleasure to report and evaluate the findings of the internal control procedures to the President of LJB Company regarding recommended changes for the organization to utilize internal control requirements. We will provide useful recommendation so that LJB Company will be fully prepared to go public
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2011 I was asked to give my recommendations on LJB Company’s internal control system before the company decides to go public in the future. Based on my review of the information that I have been given‚ the following are my recommendations for new internal controls: 1. Establishment of Responsibility 2. Segregation of Duties 3. Human Resources Control 4. Independent Internal Verification 5. Physical controls It is good to see that LJB recognizes the efforts of its long term
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Internal Control and Accounting Systems Learning Area Overview Welcome to this learning area overview for Internal Control and Accounting Systems‚ prepared by AAT. In this overview we’ll explain what Internal Control and Accounting Systems is all about‚ and how it fits into the bigger picture of the AAT Accounting Qualification. We’ll explore the main topics you can expect to cover‚ and how the knowledge and skills you’ll pick up will be of practical use to you in the workplace. Finally‚ we’ll
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Office‚ Accounting – Archives - Secretary * Handled the Accounting Department activities daily; Processed payments and collections; Oversaw all office duties and responsibilities in a timely matter; Verifies and certified documents and maintained files in order; Maintained inventory records and financial information. University Of Valley‚ Cali Colombia 09-90 – 11-95 Quality Control - Chemical Analyst * Responsible for running processes and quality control; Took samples
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President of LBJ Re: Internal Controls My Recommendation Impact of going public Public companies‚ as the result of the passing of Sarbanes Oxley Act of 2002‚ are necessary to document their controls‚ assess the documented controls and have their external auditors examine their testing of controls and note down a report about the efficiency of controls surrounding financial reporting. As a result‚ there will be supplementary work on designing‚ testing and auditing of controls if you come to a decision
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requirements of AAT Learning and Assessment Area ‘Internal Control and Accounting Systems.’ | |The objectives of this report are to: | |a)analyse accounting system and effectiveness of its internal control | |b) to identify the strengths and weaknesses of accounting system and to recommend necessary improvements or
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Case Overview For forty years the Levis owned and operated a jewelry store. They had survived many financial ups and downs over the years‚ but the current declining cash position of the company was nearing critical. On more than one occasion Mrs. Levi had suspected Betty‚ a long term‚ reliable‚ employee for over twenty years‚ might be stealing from the company. Betty not only worked as a sales clerk‚ but she also handled all of the cash and bank deposits and maintained all of the sales and
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